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Hip Hip Hooray – Government Finally Updates Antiquated Funding Formula

General practice owners are delighted that the Government
is modernising the way it funds community doctors to better
reflect the needs of patients.

Cabinet has broadened
the range of factors which influence funding from just age
and sex, to include deprivation, multi-morbidity, and
rurality.

“The capitation system, which determines
how general practices are funded, hasn’t been meaningfully
updated since it was established in 2002,” says Dr Angus
Chambers, Chair of the General Practice Owners Association
(GenPro).

“Despite numerous reviews and the widely
supported recommendations of the 2022 Sapere report, little
progress had been made. This lack of action by successive
governments perpetuates inequities and undermines the
sustainability of primary care.”

“GenPro has been
calling for a funding review for years, so hats off to
Health Minister Simeon Brown for finally getting it done and
implemented from July next year.

“In
particular we support the addition of funding criteria such
as deprivation – a marker of high health needs – and
rurality, as rural areas have less access to health services
under the current formula. GenPro also supports regular
updates of capitation every five years, starting in
2028.

“GenPro also welcomes Minister
Brown’s announcement of increased funding to support
general practitioners in training, and putting more
structure around feedback from the sector. We invite him to
work with GenPro to design a health target so we can see
patients as soon as we can.

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“GenPro is also pleased
with the announcement of a group to advise the minister on
primary care. We believe that decisions made by successive
ministers have suffered from poor advice from the Ministry
of Health and Health New Zealand leading to the current
workforce and funding crisis affecting General Practice.
Better advice will be essential to a high performing system
in the future.

“These are all positive signs and,
along with recent funding increases announced in the Budget,
indicate improvements that will make a real difference for
patients.”

GenPro members are owners and providers
of general practices and urgent care centres throughout
Aotearoa New Zealand. For more information visit www.genpro.org.nz

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